True or false? When cash is paid on account, a liability is increased.
Question:
True or false? When cash is paid on account, a liability is increased.
Journal Entries:
The accounting cycle of the company will not be complete if there is no recognition of journal entries. These entries are significant in recording business transactions.
Answer and Explanation: 1
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View this answerThe correct answer is false.
We must recognize first the journal entries of the above transactions as follows.
| Account Title | Debit | Credit |
| Liability | xx |
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Journal Entries & Trial Balance | Differences & Examples
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Chapter 3 / Lesson 9Discover the meaning of a journal entry and a trial balance, types of journal entries, how a general ledger differs from a trial balance, and some examples.
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